Royal Enfield continues to suffer in domestic market while exports fuel sales
Royal Enfield has reported negative sales in the Indian market for the eighth consecutive month as the Chennai-based two-wheeler brand announced a 22% fall in year-on-year numbers for July. It’s the fifth consecutive month that the company has reported a double-digit decline. Meanwhile, exports continue to flourish as Royal Enfield registered 72% growth in international sales.
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The sales have continuously dropped since November last year. Incidentally, that’s the same month when Classic Legends, a subsidiary of Mahindra and Mahindra Group, re-introduced Jawa Motorcycles in the Indian market. You can check out Royal Enfield’s overall sales performance since November last year in the table below:
| Month | Latest Sales | Last Year’s Sales | Percentage Difference |
| June 2019 | 58,339 | 74,477 | -22 |
| May 2019 | 62,371 | 74,697 | -17 |
| April 2019 | 62,879 | 76,187 | -17 |
| March 2019 | 58,434 | 74,209 | -21.3 |
| February 2019 | 60,066 | 71,354 | -15.8 |
| January 2019 | 70,872 | 76,205 | -7.0 |
| December 2018 | 56,026 | 65,367 | -14.3 |
| November 2018 | 65,026 | 67,776 | -4.1 |
Last month saw the biggest dip in the year-on-year sales performance since November 2018 as the company reported a 24% decline. Meanwhile, exports have been fuelling the sales for the Chennai-based two-wheeler brand since December last year, which incidentally is the month after the launch of the Royal Enfield 650 Twins. You can check out the export performance of Royal Enfield since November 2018 in the table below:
| Month | Latest Sales | Last Year’s Sales | Percentage Difference |
| June 2019 | 3,257 | 1,889 | 72 |
| May 2019 | 2,160 | 2,187 | -1 |
| April 2019 | 3,742 | 1,560 | 139.87 |
| March 2019 | 2,397 | 1,878 | 27.63 |
| February 2019 | 2,564 | 1,723 | 48.81 |
| January 2019 | 1,829 | 1,673 | 9.32 |
| December 2018 | 2,252 | 1,601 | 40.66 |
| November 2018 | 718 | 2,350 | -69.44 |
The improved exports could be attributed to the launch of the Royal Enfield Interceptor INT 650 and the Continental GT 650 in various international markets. The 650 Twins are sold in India, Australia, New Zealand, USA, Thailand, Vietnam, Indonesia and the UK. Royal Enfield developed the 650 Twins for the global markets and the new bikes seem to be meeting the company's sales expectations. The exports will witness further boost once the operations at the company’s first overseas plant commence in Thailand. Royal Enfield will export motorcycles to Thailand via the CKD route and assemble them at the new facility.
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Meanwhile, the company is reportedly preparing to enter the lower displacement segment by introducing a 250 cc motorcycle at competitive prices to regain its lost market share and boost the sales. The development of the new, quarter-litre bike is currently in initial stages and we could hear more details next year. Apart from the 250 cc model, Royal Enfield even plans to launch a no-frills version of all its products that will arrive at a lower price tag than the existing variants and will be available with accessories.
